AMS, Dialog Confirm Merger Talks

Mixed-signal, power, and RF chip companies AMS AG and Dialog Semiconductor plc have announced that they are in discussions over a possible merger.

The companies said that the talks have been going on for some time but are still in a preliminary stage.

Both companies said that the merger was not certain to take place but that they had issued statements because of speculation in the press.

AMS had annual sales of about $500 million in 2013, and Dialog had annual sales of $900 million. Under stock exchange rules AMS has until July 24 to announce its intention to make an offer to acquire Dialog, or not.

>> This might consolidate some of the sensor industry and provide competition to bigger players.

Yes, but it may be marginal competition. The real problem is coming from Asia. As we saw the steel industry go in U.S/Wester Europe. most of these companies will be challenged by globalization. M&A will help but the global competitive market will not disappear.